Tools

YouTube Launches Channel Sponsorships for Advertisers

There has been a lot of news surrounding Twitter and Facebook as the two social giants revamp their advertising platforms. So it should come as no surprise that YouTube is following suit.

It appears that Google is rolling out channel sponsorships, which provide advertisers — who are looking for targeted marketing — with 96 original content channels in various categories. Sponsorships include display, overlay, and pre-roll ads.

It’s important to note that 20 percent of the ads will appear in the new channels, while the remainder will run across YouTube.

According to AdAge, the company is asking as much as $62 million for a one-year exclusive package in the music and pop culture categories. A Sports channel package runs around $40 million, automotive packages cost $16 million, and a package targeting moms will cost $10 million.

The video platform will also offer smaller packages — which will cost between $10 and $20 million per sponsor — in categories like celebrity news, music and film, and geeks and gadgets. Single channel sponsorships will run between $2 and $4 million per year.

Last summer, Google revealed that 30 percent of YouTube’s viewers watch pre-roll ads. According to AdWeek, the new model could bring in between $4 and $6 million per year, per sponsorship of a single channel. While national brands like Toyota and GM have already signed on, the high costs make it difficult for small businesses to get in on the action.

Jennifer Beese: Jennifer Beese has worked as a community manager and social media strategist. When she’s not writing, you can find her studying anatomy and physiology—she literally has a skeleton in her closet—or under the stars with her telescope.